For cash budgeting purposes, Inventory purchases are generally considered as paid in the quarter incurred

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Inventory purchases are often recorded as expenses when incurred, but the actual cash payment may occur in a different period, depending on the credit terms agreed upon with suppliers. Cash budgeting accounts for when the cash outflows actually occur, which may not align with the quarter in which the inventory is purchased.

For Cash Budgeting Purposes, Inventory Purchases Are Generally Considered as Paid